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2015 (5) TMI 1200 - ITAT CHANDIGARHReopening of assessment u/s 147 - rejection of claim of registration u/s 12AA - Validity of reasons to believe - HELD THAT:- In the reason recorded by the AO dt. 29th Jan., 2008 (for all the three assessment years) he has referred to the opening balance of the Trust fund at ₹ 15,92,245 which is the basis of formation of belief that a part of the above donation exceeding ₹ 1 lac, being the income as per s. 2(24)(iia) has escaped assessment; whereas the returns of income already stood filed as stated hereinabove with no donation exceeding ₹ 1 lac having escaped assessment demonstrating clearly that the very basis of forming the belief had no rational connection or relevant bearing on the formation of the belief. In other words, the belief entertained by the AO was not at all bona fide. In fact, the opinion formed is based on wrong and incorrect facts and suspicion. AO proceeded for reopening of assessment on non-existent and factually incorrect reasons and he did not apply his mind prior to recording of reasons. In the reasons recorded by the AO, it is clearly stated that, "For the asst. yr. 2001-02, the assessee has not filed any income-tax return. Moreover, no returns for the asst. yrs. 2002-03 and 2003-04 have been filed." On the contrary, the AO himself has admitted in the assessment orders that the returns for all the three years under consideration were filed by the assessee. Not only this, even the learned CIT(A) has affirmed this fact. It is relevant to observe here that the reasons recorded for reopening of the assessments reproduced by the AO in the assessment order and by learned CIT(A) in para 3.1 of the impugned order are not the actual/original reasons recorded by the AO for reopening of the assessments. These are the findings given by the learned CIT-I, Ludhiana for refusing to grant registration to the assessee trust. It is clear that both the authorities below have wrongly considered the findings given by the learned CIT-I, Ludhiana as reasons recorded for reopening of the assessments. Therefore, on this score alone, the reassessment orders are not sustainable. - Decided in favour of assessee
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